Best SIP Plans: Top SIP Plans to Invest in India

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Written by PolicyBazaar  -  
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Updated date :  13 March 2020
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A Systematic Investment Plan (SIP) is a process of making an investment in mutual funds. It is a substitute for the traditional lump-sum method of making the investment. Through the process of systematic investment plan (SIP) the investors can invest a pre-determined amount in the mutual fund scheme at a specific interval of time. As there is a wide range of mutual fund schemes available in the market. Let’s take a look at the top-performing mutual fund schemes, which is apt for SIP investment in the year 2020.

Best SIP Plans for the Year 2020

Fund Name Monthly Investment 1 Year Returns 3 years Return 5 years Return
Axis Focused 25 Fund 5000 31.9% 16.64% 17.19%
DSP Equity Fund 5000 31.9% 14.69% 14.36%
ICICI Prudential Bluechip Fund 5000 12.02% 8.48% 10.81%
Axis Bluechip Fund  5000 21% 18.3% 11.3%
HDFC Balance Advantage Fund  5000 3.1% 16.6% 15.5%
TATA India Consumer Fund  5000 8.3% 14.7% 15%
Kotak Standard Multicap Fund 5000 18.19% 11.14% 13.24%
Motilal Oswal Focused 25 Fund 5000 26.57% 12.48% 12.82%
Franklin India Focused equity Fund 5000 12.47% 8.13% 10.1%
Nippon India large Cap Fund 5000 11.07% 8.42% 10.9%

The process of SIP mutual fund allows the investors to manage their personal finance and create a financial cushion so that they can achieve the financial objectives of life. Contribution towards SIP helps the investors to manage their investment on a regular basis in a simple and hassle-free way. Even though returns on SIP mutual fund entirely depend on the market performance the above is the list of top-performing best SIP plans for the year 2020, wherein you can consider investing.

1. Axis Focused 25 Fund

This is an open-ended equity fund, which aims to generate long term capital appreciation by making the investment in equity and equity-related securities. As an equity-oriented fund, Axis Focused 25 Fund is a high-risk fund option, which offers higher returns on investment. Let’s take a look at the fund details.

Fund Name Monthly Investment Investment Tenure Expected Annual Return
Axis Focused 25 Fund  Rs.5000 5 years 14%

2. DSP Equity Fund

This is an open-ended equity fund, which the main objective is to generate long-term capital appreciation by making the investment in equity and equity-related instruments. Along with the investment in equity securities, the fund also invests in debt and money market instruments in order to maintain the liquidity of fund from time to time. As one of the best SIP plans, this fund is best fit for investors who have a high-risk appetite and who want to gain high returns on investment over a period of 3-5 years. Let’s take a look at the fund details.

Fund Name Monthly Investment Investment Tenure Expected Annual Return
DSP Equity Fund  Rs.5000 5 years 14.36%

3. ICICI Prudential Bluechip Fund

As an open-ended equity scheme, this  fund majorly invests in large-cap stocks. The main objective of the scheme is to provide long-term capital appreciation by making investment predominantly in equity and equity-related instrument of large-cap companies. Let’s take a look at the fund details.

Fund Name Monthly Investment Investment Tenure Expected Annual Return
ICICI Prudential Bluechip Fund  Rs.5000 5 years 10.81%

4. Axis Bluechip Fund

This is an equity-oriented fund that main objective is to achieve long-term capital appreciation by making investment majorly in equity and equity-related securities of large-cap companies including derivatives. This fund is best suitable for the investor who has a high-risk appetite and who wants to gain a high return on investment over a long-term period. Let’s take a look at the fund details.

Fund Name Monthly Investment Investment Tenure Expected Annual Return
Axis Bluechip Fund  Rs.5000 5 years 12%

5. HDFC Balance Advantage Fund

As one of the best SIP plans, HDFC Balanced Advantage Fund is an open-ended fund, which main objective is to provide long-term capital growth by making investment predominantly in equity and debt instrument. This fund is great option of investment  for investors who have a moderate to high-risk investment appetite and who want to gain a profitable return on investment. Let’s take a look at the plan detail.

Fund Name Monthly Investment Investment Tenure Expected Annual Return
HDFC Balanced Advantage Fund   Rs.5000 5 years 16%

6. TATA India Consumer Fund

This is an open-ended fund, which aims to provide long-term capital growth by investing 80% of the asset in equity and equity-oriented securities. This fund is best fit for investors who have a high-risk appetite. Let’s take a look at the plan details.

Fund Name Monthly Investment Investment Tenure Expected Annual Return
TATA India Consumer Fund  Rs.5000 5 years 15%

Best SIP Plans for 3 Years

As there are an extensive range of SIP mutual funds available in the market if often become confusing for investors to choose the best SIP plan in India to invest in. Thus, for the better understanding of our reader, here we have segregated best SIPs in India based on 3 years returns.

Fund Name Category Investment Tenure Expected Annual Return (3 Yrs)
Axis Bluechip Fund Equity- large-cap 3 years 18.3%
UTI Equity Fund Equity- multi-cap 3 years 13.8%
Canara Robeco Equity Diversified Fund Equity- multi-cap 3 years 14.1%
Mirae Asset Emerging Bluechip Fund Equity- large & mid-cap 3 years 13.5%
DSP Blackrock Equity Fund Equity- multi-cap 3 years 12.8%

Best SIP Plans for 5 Years

Apart from 3 years SIP plan, if an individual wants to invest for a longer tenure of 5 years, then they can consider investing in these best SIPs in India on the basis of 5 years returns.

Fund Name Category Investment Tenure Expected Annual Return (3 Yrs)
Franklin U S opportunities  Fund Equity- Global 5 years 14.5%
Axis mid-cap Fund Equity- mid-cap 5 years 11.4%
Axis Long-term equity Fund Equity- ELSS 5 years 11.9%
Axid Focused 25 Fund Equity- Focused 5 years 13.1%
SBI Focused Equity Fund  Equity- Focused 5 years 12.5%

 

Frequently Asked Questions

Q1. Does SIP Investment offer tax benefit?

Ans- Not all SIP plans offer tax benefit. The investment made through SIP in equity-linked savings scheme are applicable for tax exemption under section 80C of Income Tax Act.

Q2. What are the maximum and minimum amount that can be invested in SIP?

Ans- The investors can start making an investment through SIP with a minimum amount of Rs.500. However, there is no upper limit on the maximum investment in SIP.

Q3. How can I start SIP Investment?

Ans- The investors can choose the offline or the online method to start making the SIP investment.

For online method:

  • Visit the official website of the asset management company (AMC).
  • Fill all the details for online SIP.
  • Along with the details of KYC, the investors will require to submit the scanned copy of address proof, cheque, account number and ID proof.

For offline method

  • Visit the branch office of the asset management company (AMC).
  • Fill the auto-debit form and application form thoroughly.
  • Submit all the important documents such as address proof, ID proof along with the properly signed cheque to the address of mutual fund.
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